Can you buy a house in Saudi Arabia in 2025?

Last updated on June 12, 2025

Authored by the expert who managed and guided the team behind the Saudi Arabia Property Pack

Everything you need to know before buying real estate is included in our Saudi Arabia Property Pack

As we reach mid-2025, Saudi Arabia's property market continues its transformation under Vision 2030, making it increasingly accessible to foreign buyers.

The Kingdom has implemented significant regulatory changes to attract international investment, opening doors that were previously closed to non-Saudis. This comprehensive guide answers the most critical questions for anyone considering purchasing property in Saudi Arabia today.

If you want to go deeper, you can check our pack of documents related to the real estate market in Saudi Arabia, based on reliable facts and data, not opinions or rumors.

Quick Summary:

Foreign buyers can now legally purchase property in Saudi Arabia with specific permits and residency requirements, though restrictions apply in holy cities and border areas.

The process typically takes 1-2 months, requires valid Iqama or Premium Residency, and involves 2.5% transfer fees plus ongoing costs like white land tax.

Aspect	Details
Foreign Ownership Allowed	Yes, with specific regulations and permits
Property Types Available	Residential (apartments, villas), Commercial (with special approval)
Location Restrictions	Prohibited in Mecca and Medina (except through company shares up to 49%); Military zones and border areas also restricted
Residency Requirement	Valid Iqama or Premium Residency required for direct ownership
Average Property Prices	Riyadh: SAR 5,320/sqm (houses), SAR 5,050/sqm (apartments); Jeddah: SAR 5,150/sqm (houses), SAR 4,250/sqm (apartments)
Key Documents Needed	Passport, Iqama, proof of income, employment certificate, property details, government approvals
Taxes and Fees	2.5% property transfer fee, up to 10% white land tax, registration fees
Mortgage Availability	Yes, for residents with Iqama; 15-30% down payment typical
Purchase Timeline	1-2 months from property selection to final registration
Rental/Resale Rights	Permitted with legal compliance

Who is the author of this content?

SANDSOFWEALTH

A team specialized in real estate investing in MENA countries (Saudi Arabia, UAE, Qatar, Kuwait, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Saudi Arabia. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At SandsOfWealth, we explore the Saudi real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Riyadh, Jeddah, and Dammam. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Can foreigners legally buy property in Saudi Arabia in 2025?

Yes, foreigners can legally purchase property in Saudi Arabia as of June 2025.

The Kingdom has substantially reformed its real estate laws under Vision 2030 to attract foreign investment. However, foreign buyers must comply with specific regulations and obtain necessary permits. Most foreigners need either a valid residence permit (Iqama) or must qualify for the Premium Residency Program to own property directly.

The regulatory framework has evolved significantly since the early 2020s, when foreign ownership was highly restricted. Now, the Saudi government actively encourages international investment in real estate as part of its economic diversification strategy. The Ministry of Investment oversees foreign property acquisitions and has streamlined the approval process considerably.

It's important to note that while ownership is possible, it comes with specific conditions. Foreign buyers must demonstrate legitimate reasons for property purchase, such as residence, business operations, or investment purposes. The property must also be used for its intended purpose as declared during the application process.

For those considering investment, the legal framework provides strong protection for foreign property rights, similar to those enjoyed by Saudi nationals.

What types of properties can foreigners buy?

Foreigners in Saudi Arabia have access to various property types, though some restrictions apply.

Residential properties form the bulk of available options for foreign buyers. This includes apartments and condominiums in major urban centers, particularly in modern developments and compounds. Villas and standalone houses are also available in designated areas, especially in new economic zones like NEOM and King Abdullah Economic City. These special economic zones often have more relaxed ownership rules to attract international residents and investors.

Commercial properties represent another opportunity, though they require special approval from relevant authorities. Office spaces and retail units can be purchased for business operations, while investment properties are available for those meeting the minimum SAR 30 million investment threshold. The commercial property sector has become increasingly attractive as Saudi Arabia develops its non-oil economy.

Direct land ownership remains limited for foreigners except in large-scale investment projects. Agricultural properties are gradually being opened to foreign investment, but regulations are still evolving. Raw land purchases typically require substantial investment commitments and government approval for specific development projects.

It's something we develop in our Saudi Arabia property pack.

Which cities allow foreign property ownership and which don't?

Foreign property ownership in Saudi Arabia is permitted in most major cities, with notable exceptions.

Cities Where Foreigners Can Buy	Restricted Areas
Riyadh (capital city)	Mecca (direct ownership prohibited)
Jeddah (major commercial hub)	Medina (direct ownership prohibited)
Dammam and Eastern Province cities	Military zones and protected areas
NEOM (futuristic mega-city project)	Properties near international borders
King Abdullah Economic City	Certain strategic coastal areas
Other designated economic zones	Government-designated security zones

The holy cities of Mecca and Medina maintain special status under Saudi law. While direct property ownership is prohibited for non-Muslims in these cities, foreigners can own up to 49% shares in companies that own property there. This arrangement allows for indirect investment while respecting the religious significance of these locations.

What documents do I need to buy property as a foreigner?

Foreign buyers must prepare comprehensive documentation to purchase property in Saudi Arabia.

Essential identity documents include a valid passport with at least six months validity and either a residence permit (Iqama) or Premium Residency documentation. These form the foundation of your application and prove your legal status in the Kingdom. Employment-related documents are equally crucial, including proof of income from the last 3-6 months, an employment certificate from your Saudi employer, and bank statements typically covering the last six months.

Property-specific documentation requires careful attention. You'll need complete property documentation from the seller, including title deeds, building permits, and any existing mortgage information. Government approvals from the Ministry of Investment or Ministry of Interior are mandatory, and some employers require a no-objection certificate for their employees purchasing property.

Additional documents may be requested depending on your specific situation. These might include marriage certificates for joint purchases, power of attorney if buying through a representative, or business licenses if purchasing commercial property. Translation and attestation of foreign documents is often required.

Working with a qualified real estate lawyer familiar with Saudi regulations can help ensure all documentation meets current requirements.

Do I need a residence permit to buy property?

In most cases, foreign buyers need either a valid residence permit (Iqama) or Premium Residency to purchase property directly in Saudi Arabia.

The standard route for most expatriates involves obtaining an Iqama through employment sponsorship. This residence permit allows property purchase for personal use or investment, subject to regulatory approval. The Iqama must remain valid throughout the purchase process and property ownership period.

The Premium Residency Program offers several pathways for property ownership. Permanent Residency requires a one-time fee of SAR 800,000, providing long-term stability for property investors. Temporary Residency options start at SAR 100,000 annually, suitable for those testing the market. The Property Investment Residency specifically targets real estate investors, requiring a minimum SAR 4 million investment in property.

Non-residents have limited options but aren't entirely excluded. They can invest through joint ventures with Saudi partners, enter into long-term lease agreements (up to 99 years in some cases), or acquire shares in property-owning companies. Some special economic zones also offer unique arrangements for international investors.

The residency requirement ensures buyers have genuine connections to Saudi Arabia and helps maintain market stability.

How much does an average house cost in major cities?

Property prices in Saudi Arabia vary significantly between cities and property types.

Riyadh, as the capital and largest city, commands premium prices. Houses average SAR 5,320 per square meter, while apartments cost around SAR 5,050 per square meter. A typical 2-bedroom apartment ranges from SAR 1.5-2 million, while villas typically cost SAR 2-3 million. The city has seen 10% year-on-year price growth in 2024, driven by government initiatives and corporate relocations.

Jeddah offers slightly lower prices than Riyadh. Houses average SAR 5,150 per square meter, with apartments at SAR 4,250 per square meter. Two-bedroom apartments typically range from SAR 1.2-1.8 million, while villas cost SAR 2-2.8 million. The city experienced 5% annual growth in 2024, reflecting steady demand from both local and international buyers.

Dammam and the Eastern Province present more affordable options. Houses average SAR 3,430 per square meter, with apartments at SAR 3,545 per square meter. Two-bedroom apartments range from SAR 900,000-1.5 million, while villas cost SAR 1.5-2.2 million. The region benefits from oil industry employment and proximity to Bahrain.

Annual price increases of 3-7% are expected to continue through 2025, supported by strong economic growth and housing demand.

What taxes and fees should I expect?

Purchasing and owning property in Saudi Arabia involves various taxes and fees that buyers must budget for.

Fee Type	Amount	When Paid
Property transfer fee	2.5% of property value	At purchase
Registration fees	Varies by location	At purchase
Legal fees	1-2% of property value	At purchase
Valuation fees	SAR 2,000-5,000	During mortgage process
White land tax	Up to 10% annually	Ongoing (if applicable)
Utilities	Varies	Monthly
Maintenance fees	Varies by property	Monthly/Annually
Premium Residency fees	SAR 100,000+ annually	Annually (if applicable)

The white land tax deserves special attention as it can significantly impact investment returns. This tax applies to undeveloped land or vacant buildings in urban areas, encouraging development and discouraging speculation. Rental income is subject to relatively low tax rates compared to many other countries, making Saudi Arabia attractive for buy-to-let investors.

Can I get a mortgage as a foreigner?

Yes, foreigners with valid Iqamas can obtain mortgages from Saudi banks.

Eligibility requirements vary by bank but typically include a valid residence permit, minimum monthly salary between SAR 10,000-25,000, and employment with approved companies. Age restrictions usually range from 21-60 years, with the loan term adjusted based on retirement age. Banks carefully assess debt-to-income ratios and employment stability.

Mortgage terms for expatriates are generally favorable, though slightly more restrictive than for Saudi nationals. Down payments typically range from 15-30% of property value, with loan-to-value ratios of 70-85%. Maximum tenure extends up to 30 years, though this may be limited by visa validity and retirement age. All financing must comply with Sharia principles, meaning Islamic banking structures rather than conventional interest-based loans.

Major banks serving the expatriate market include Al Rajhi Bank, Saudi British Bank (SABB), Banque Saudi Fransi, Riyad Bank, and Arab National Bank. Each institution has specific programs for foreign buyers, with varying terms and conditions. Shopping around for the best rates and terms is advisable.

It's something we develop in our Saudi Arabia property pack.

What are the key steps to buy property?

The property purchase process in Saudi Arabia follows a structured pathway with specific requirements at each stage.

Property selection marks the crucial first step. Working with licensed real estate brokers ensures access to legitimate properties and professional guidance. Verify property titles and ownership documents thoroughly, checking for any disputes or encumbrances. This due diligence phase prevents future complications and ensures clean title transfer.

Once you've selected a property, apply for ownership permits through the Ministry of Investment or relevant authority. Submit all required documentation, including identity papers, financial proof, and property details. The application should clearly state the intended use of the property and demonstrate compliance with foreign ownership regulations.

Government review typically takes 2-4 weeks, during which officials verify documentation and ensure regulatory compliance. Additional documentation may be requested during this period. Upon approval, you'll receive official permission to proceed with the purchase.

The final stages involve signing the purchase agreement with a notary or legal representative, paying the required deposit (typically 10-20%), and completing any mortgage applications. After settling all payments and fees, property registration at the Ministry of Justice or Survey and Land Registration Bureau concludes the process, resulting in official title deed issuance.

How long does the purchase process take?

The typical timeline for completing a property purchase in Saudi Arabia is 1-2 months from property selection to final registration.

Property search and selection can take anywhere from one to four weeks, depending on market conditions and buyer requirements. This phase includes viewing properties, conducting initial due diligence, and negotiating terms with sellers. Working with experienced agents can significantly reduce this timeframe.

The government approval process represents the most variable component, typically requiring 2-4 weeks. Simple residential purchases in major cities often receive faster approval, while complex commercial transactions or properties in restricted areas may take longer. Having complete, accurate documentation from the start helps avoid delays.

Mortgage approval, if required, adds another 1-4 weeks to the timeline. Banks conduct property valuations, assess buyer creditworthiness, and process internal approvals. Cash buyers can skip this step entirely, potentially reducing the overall timeline by several weeks.

Final documentation and registration usually complete within 1-2 weeks once all approvals are in place. This includes contract execution, payment processing, and official registration. Delays can occur if documentation is incomplete or if additional approvals are required for specific property types or locations.

Can I rent out or resell my property?

Foreign property owners in Saudi Arabia enjoy full rights to rent out and resell their properties, subject to legal compliance.

Renting out investment properties is fully permitted and represents a significant opportunity given strong rental demand in major cities. Rental yields remain attractive at 8.89% in Riyadh and 7.89% in Jeddah. Property owners must comply with local rental regulations, including tenant registration and standard lease agreements. Many foreign owners engage property management companies to handle maintenance, tenant relations, and regulatory compliance.

Property resale is equally straightforward, though certain considerations apply. Outstanding mortgages must be settled before transfer, and applicable transfer fees and taxes paid. The same 2.5% transfer fee applies to resales. Foreign sellers must ensure their residency status remains valid through the sale process.

An important consideration for those who obtained residency through property investment: selling the property may affect residency status. The Premium Residency program has specific requirements about maintaining qualifying investments. Consultation with immigration lawyers before selling is advisable to understand potential impacts.

Capital gains from property sales currently face favorable tax treatment, though regulations continue to evolve as the market matures.

What risks should foreigners be aware of?

Foreign property buyers in Saudi Arabia face several risks requiring careful consideration and mitigation strategies.

Title and ownership issues represent the primary concern for many buyers. The traditional "tanazul" system of informal property transfers can create complications, particularly for older properties. Some properties may have unclear or disputed title deeds, making thorough due diligence essential. Always work with reputable lawyers familiar with Saudi property law and insist on comprehensive title searches before purchase.

Legal complexity poses ongoing challenges as regulations continue to evolve. The property market transformation under Vision 2030 means rules may change, potentially affecting foreign ownership rights. Navigating permits and approvals requires patience and often professional assistance. Maintaining compliance with intended use declarations is crucial, as violations can result in forced sale or penalties.

Market volatility affects different regions differently. While major cities like Riyadh and Jeddah show strong, consistent growth, smaller cities may experience slower appreciation or even depreciation. Economic factors, particularly oil price fluctuations, can impact property values and rental demand. Geographic restrictions limit investment options, with certain areas remaining off-limits to foreign buyers.

Financing challenges include limited mortgage options for expatriates, higher down payment requirements than Saudi nationals, and employment-related restrictions that may affect loan eligibility.

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Investment outlook for mid-2025

The Saudi residential property market remains highly attractive for foreign investors as we progress through 2025.

Riyadh continues to lead market growth with 10% annual price increases, driven by several factors. Domestic migration to the capital accelerates as job opportunities expand beyond the oil sector. The government's mandate for international companies to establish regional headquarters in Riyadh by 2024 has created sustained demand for quality housing. This trend shows no signs of slowing, with more companies announcing relocations throughout 2025.

Mega-projects provide long-term growth catalysts across the Kingdom. NEOM's development continues to attract international attention and investment, creating entirely new real estate markets. The preparations for EXPO 2030 in Riyadh and FIFA World Cup 2034 guarantee sustained infrastructure investment and housing demand for the next decade. These projects aren't just creating temporary booms but establishing permanent new urban centers.

The government's commitment to achieving 70% Saudi homeownership by 2030 ensures continued policy support for the real estate sector. This includes mortgage subsidies, new housing developments, and regulatory reforms that indirectly benefit the entire market, including foreign-owned properties.

It's something we develop in our Saudi Arabia property pack.

infographics rental yields citiesSaudi Arabia

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Saudi Arabia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

Legal framework and protection

Saudi Arabia's legal framework for foreign property ownership has matured significantly, offering robust protections for international investors.

Property rights for foreigners now enjoy similar protections to those of Saudi nationals. The Kingdom's judicial system recognizes and enforces foreign ownership rights, with specialized commercial courts handling property disputes efficiently. Title registration systems have been modernized, providing clear ownership records and reducing the risk of disputes.

The regulatory environment continues to evolve favorably for foreign investors. Recent reforms have simplified approval processes, reduced bureaucratic delays, and clarified ownership rights. The Ministry of Investment serves as a one-stop shop for foreign investors, streamlining previously complex procedures. Digital transformation initiatives have moved many processes online, improving transparency and reducing processing times.

Dispute resolution mechanisms have also improved substantially. Arbitration is increasingly accepted for property disputes, offering faster resolution than traditional court proceedings. The Saudi Center for Commercial Arbitration provides internationally recognized arbitration services. For smaller disputes, new fast-track procedures in commercial courts reduce resolution times.

International investment treaties provide additional protection layers, with Saudi Arabia maintaining bilateral investment treaties with numerous countries that protect property rights and provide recourse for disputes.

Financing strategies for foreign buyers

Foreign buyers in Saudi Arabia can employ various financing strategies beyond traditional mortgages.

Cash purchases remain popular among international investors, eliminating financing complications and strengthening negotiating positions. Many buyers leverage assets in their home countries, obtaining loans secured against foreign properties or investments. This approach often provides better terms than local mortgages and avoids Saudi banking restrictions.

Developer financing presents another option, particularly for new developments. Major projects like NEOM and King Abdullah Economic City offer attractive payment plans, sometimes extending over several years without traditional mortgage requirements. These arrangements often include incentives like waived fees or guaranteed rental returns during initial years.

Islamic financing structures provide Sharia-compliant alternatives to conventional mortgages. Murabaha (cost-plus financing) and Ijara (lease-to-own) arrangements are widely available, often with competitive terms. These structures appeal to both Muslim and non-Muslim buyers seeking ethical financing options.

Partnership structures allow investors to pool resources, particularly useful for large commercial projects or when individual buyers don't meet minimum investment thresholds. Limited liability companies can own property, allowing multiple foreign investors to participate while limiting individual exposure.

Market trends and future projections

Several key trends shape Saudi Arabia's property market as we move through 2025 and beyond.

Sustainability and smart technology increasingly influence buyer preferences and property values. New developments incorporate renewable energy, water conservation, and smart home technologies as standard features. Properties with green certifications command premium prices and attract quality tenants. The government's sustainability initiatives under Vision 2030 reinforce this trend.

Demographic shifts create new opportunities in specific market segments. Saudi Arabia's young population drives demand for affordable housing and modern amenities. The growing expatriate community, particularly skilled professionals in emerging sectors, seeks quality rental properties in urban centers. Women's increasing workforce participation has created demand for properties in previously underserved areas.

Mixed-use developments gain popularity, combining residential, commercial, and recreational spaces. These projects appeal to modern lifestyles and offer investment diversification within single properties. Transit-oriented developments near metro stations and major transport hubs show particularly strong appreciation potential.

Regional variations in market performance continue, with secondary cities like Abha, Tabuk, and Hail emerging as investment destinations. These markets offer lower entry points and potential for higher percentage returns as infrastructure improves.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

As of June 2025, buying property in Saudi Arabia as a foreigner is more accessible than ever before. The Kingdom's regulatory reforms have created a more transparent and streamlined process, though buyers must still navigate specific requirements and restrictions.

Success requires careful planning, proper documentation, and often professional assistance to ensure compliance with all regulations. Whether you're looking to relocate to Saudi Arabia or seeking investment opportunities, the Kingdom's real estate market offers compelling prospects. Just ensure you understand the legal framework, secure proper residency status, and work with reputable professionals throughout the process.